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Associated Press
2 days ago
- Business
- Associated Press
THOR Industries Announces Third Quarter Fiscal 2025 Results
CONTINUED EXECUTION OF KEY STRATEGIES LEADS TO STRONG QUARTER AS INITIATIVES BEGIN TO SHOW EFFECTS (1) See reconciliation of non-GAAP measures to most directly comparable GAAP financial measures included at the end of this release Key Takeaways from Fiscal 2025 Third Quarter ELKHART, Ind., June 04, 2025 (GLOBE NEWSWIRE) -- THOR Industries, Inc. (NYSE: THO) today announced financial results for its fiscal 2025 third quarter, ended April 30, 2025. 'Our third quarter results exceeded our expectations on both the top and bottom lines. The successful execution of key strategic initiatives, in particular placing further emphasis on driving down our cost profile, led to improved margins in an environment where we saw modest year-over-year top-line improvement. THOR's operating model, particularly within North America, is designed to ramp upward and downward in an incredibly efficient manner, and our performance in the fiscal third quarter exhibited the strength and flexibility of this operating model. We are incredibly proud of our hard-working team members as they continue to execute to plan in the face of numerous challenging market conditions as we navigate through this prolonged industry downturn together. Our third quarter performance exemplifies what makes THOR the market leader. History has proven THOR's ability to weather difficult macroeconomic circumstances and to come back stronger when market conditions improve. While the current level of uncertainty is unprecedented, and we believe the next two fiscal quarters will be challenging for the RV industry as a whole, we are very pleased that our efforts are starting to move the needle,' stated Bob Martin, President and Chief Executive Officer of THOR Industries. Third Quarter Financial Results Consolidated net sales were $2.89 billion in the third quarter of fiscal 2025, compared to $2.80 billion for the third quarter of fiscal 2024, an increase of 3.3%. Consolidated gross profit margin for the third quarter of fiscal 2025 was 15.3%, an increase of 20 basis points over the third quarter of fiscal 2024. Net income attributable to THOR Industries, Inc. and diluted earnings per share for the third quarter of fiscal 2025 were $135.2 million and $2.53, respectively, compared to $114.5 million and $2.13, respectively, for the third quarter of fiscal 2024. EBITDA and Adjusted EBITDA for the third quarter of fiscal 2025 were $233.0 million and $254.8 million, respectively, compared to $232.3 million and $236.1 million, respectively, for the third quarter of fiscal 2024. See the reconciliation of non-GAAP measures to the most directly comparable GAAP financial measures included at the end of this release. THOR's consolidated results were primarily driven by the results of its individual reportable segments as noted below. Segment Results North American Towable RVs North American Motorized RVs European RVs Management Commentary 'While our fiscal third quarter results exceeded expectations, our overall fiscal year is unfolding in a manner that is very consistent with our original projections. We foresaw and foretold a very challenging environment in the first half of our fiscal year and, during that time, we prudently managed our operations to align with the expected difficult market conditions. Key strategic initiatives have driven important recent wins for our brands, and we are confident that we are well-positioned to return to share gains over the longer term. Our financial guidance assumed a stronger second half of our fiscal year, and our fiscal third quarter performance reflects the value of our strategies in the currently difficult market. THOR's focus on aligning production with retail sales and working with our valued independent dealer partners to ensure rational inventory levels for a suppressed retail marketplace positioned us well for the moment when retail surged, even moderately. Our fiscal third quarter results benefited from the continued execution of our strategies, and the management and production teams at our operating companies performed incredibly well, driving strong performance in our third quarter. In the fiscal third quarter, our consolidated gross margin improved to 15.3% compared 15.1% in the prior-year period. Our North American Towable segment, in particular, generated meaningful improvement on a year-over-year basis, posting a 200 basis point improvement in gross profit margin over the third quarter of fiscal 2024. As we anticipated and messaged at the beginning of our fiscal year, our North American Motorized and European segments have both seen year-over-year declines in gross margin but still achieved resilient results considering the challenging environments facing those segments. While our consolidated margin this quarter was unfavorably impacted by actions we took to deepen our partnerships with key dealers, strategically, deepening these key relationships is vital to our long-term market position and these decisions favorably position THOR for the future as we look ahead,' said Todd Woelfer, Senior Vice President and Chief Operating Officer. 'As we discussed at the end of our fiscal second quarter, significant restructuring steps at THOR were forthcoming. The strategic restructuring of Heartland to operate under Jayco's outstanding management team creates significant opportunities for both brands going forward. This realignment, along with other key initiatives, will further optimize our enterprise structure and drive meaningful savings as the Company works to reduce its cost footprint. Both prior to and throughout the fiscal year thus far, we have transparently communicated our strategies and have remained vigilantly focused on executing those strategies despite the noise in both the macro and micro environments. Our teams' dedication to the execution of those plans is exemplified in our successful third-quarter results,' said Woelfer. 'As a result of our strong quarter, on April 30, 2025, we had liquidity of approximately $1.49 billion, including approximately $508.3 million of cash on hand and approximately $985.0 million available under our asset-based revolving credit facility. In addition to the solid foundation provided by our total liquidity position and overall strong balance sheet, during the third quarter, we generated cash from operations of approximately $257.7 million, bringing our fiscal year-to-date total to $319.2 million. Despite our lower year-to-date net income, through the third fiscal quarter of 2025 we have improved our cash flow from operating activities by over $100 million on a year-over-year basis by executing on our proven operating model and significantly reducing our working capital,' noted Colleen Zuhl, Senior Vice President and Chief Financial Officer. 'True to our historical commitment of taking a measured and conservative approach to cash management and capital allocation, especially during challenging economic periods, through the third quarter of fiscal 2025, we have made selective capital expenditures of approximately $85.1 million with a priority on time-sensitive investments in our facilities and machinery. Through the first three quarters of fiscal 2025, we have also reduced our total indebtedness by approximately $139.2 million and returned capital to our shareholders primarily through the payment of $79.8 million in quarterly dividends. Subsequent to the end of our third fiscal quarter, we further reduced our indebtedness with a $55.0 million payment against the principal balance of our USD term loan. While we were unable to repurchase shares during our fiscal third quarter due to trading restrictions, THOR remains well positioned to take advantage of the currently suppressed securities market with our strong cash position. Management's view remains that there are few other capital allocation options that offer such significant return to our shareholders,' added Zuhl. Outlook 'Last quarter, THOR expressed the belief that RVIA's prior expectation of calendar 2025 industry wholesale unit shipments exceeding 350,000 was aggressive. Recently, RVIA lowered their expectations to a most likely scenario of approximately 337,000 units, which is more in line with THOR's long-held view for the calendar year. We expect the fourth quarter of our fiscal 2025 and the first quarter of our fiscal 2026 to be challenging. The current economic uncertainty has led to downward pressure on consumer confidence and has negatively impacted retail pull-through. We believe that upon the resolution of this uncertainty, we will see improved consumer confidence and the return of a strong retail environment. In the meantime, we will continue to execute the strategies necessary to maximize our performance in the given market conditions. Our focus will remain on controlling what we can control and prudently managing the Company through the macroeconomic challenges. As we do so, THOR will continue to demonstrate that it is well-equipped to emerge from the current downturn stronger and more resilient,' concluded Martin. Fiscal 2025 Guidance 'THOR's strong fiscal third quarter results strengthened the alignment of our year-to-date performance with our full-year financial guidance. Despite the strong quarter, margin pressures persist as we continue to manage through softer retail and wholesale demand in our North American Motorized and European segments and implement strategic actions to strengthen our relationships with our independent dealers. Taking into consideration results to date and our expectations for our North American and European operations for the final fiscal quarter, the Company has reaffirmed its revised financial guidance for fiscal 2025,' commented Woelfer. 'While we are maintaining our revised full-year guidance, we recognize that potential swings from uncertainties in the macro environment could be significant. Due to recent developments in trade policies, and considering the remaining duration of our fiscal year, THOR believes that its performance is still slated to fall solidly within its previously announced guidance, assuming no new material shifts within the macro or global trade environment. We will continue to provide transparent viewpoints of our performance and market conditions to enable investors and analysts to appreciate the current operating environment and our performance within that environment. The addition of Seth Woolf to our team better enables us to ensure that we are communicating THOR's performance and value proposition in a transparent and effective manner,' concluded Woelfer. For fiscal 2025, the Company's full-year financial guidance includes: Supplemental Earnings Release Materials THOR Industries has provided a comprehensive question and answer document, as well as a PowerPoint presentation, relating to its quarterly results and other topics. To view these materials, go to About THOR Industries, Inc. THOR Industries is the sole owner of operating subsidiaries which, combined, represent the world's largest manufacturer of recreational vehicles. For more information on the Company and its products, please go to Forward-Looking Statements This release includes certain statements that are 'forward-looking' statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are made based on management's current expectations and beliefs regarding future and anticipated developments and their effects upon THOR, and inherently involve uncertainties and risks. These forward-looking statements are not a guarantee of future performance. We cannot assure you that actual results will not differ materially from our expectations. Factors which could cause materially different results include, among others: the impact of inflation on the cost of our products as well as on general consumer demand; the effect of raw material and commodity price fluctuations, including the impact of tariffs, and/or raw material, commodity or chassis supply constraints; the impact of war, military conflict, terrorism and/or cyber-attacks, including state-sponsored or ransom attacks; the impact of sudden or significant adverse changes in the cost and/or availability of energy or fuel, including those caused by geopolitical events, on our costs of operation, on raw material prices, on our suppliers, on our independent dealers or on retail customers; the dependence on a small group of suppliers for certain components used in production, including chassis; interest rates and interest rate fluctuations and their potential impact on the general economy and, specifically, on our independent dealers and consumers and our profitability; the ability to ramp production up or down quickly in response to rapid changes in demand or market share while also managing associated costs, including labor-related costs and production capacity costs; the level and magnitude of warranty and recall claims incurred; the ability of our suppliers to financially support any defects in their products; the financial health of our independent dealers and their ability to successfully manage through various economic conditions; legislative, regulatory and tax law and/or policy developments including their potential impact on our independent dealers, retail customers or on our suppliers; the costs of compliance with governmental regulation; the impact of an adverse outcome or conclusion related to current or future litigation or regulatory audits or investigations; public perception of and the costs related to environmental, social and governance matters; legal and compliance issues including those that may arise in conjunction with recently completed transactions; the level of consumer confidence and the level of discretionary consumer spending; the impact of exchange rate fluctuations; restrictive lending practices which could negatively impact our independent dealers and/or retail consumers; management changes; the success of new and existing products and services; the ability to maintain strong brands and develop innovative products that meet consumer demands; changes in consumer preferences; the risks associated with acquisitions, including: the pace and successful closing of an acquisition, the integration and financial impact thereof, the level of achievement of anticipated operating synergies from acquisitions, the potential for unknown or understated liabilities related to acquisitions, the potential loss of existing customers of acquisitions and our ability to retain key management personnel of acquired companies; a shortage of necessary personnel for production and increasing labor costs and related employee benefits to attract and retain production personnel in times of high demand; the loss or reduction of sales to key independent dealers, and stocking level decisions of our independent dealers; disruption of the delivery of units to independent dealers or the disruption of delivery of raw materials, including chassis, to our facilities; increasing costs for freight and transportation; the ability to protect our information technology systems from data breaches, cyber-attacks and/or network disruptions; asset impairment charges; competition; the impact of losses under repurchase agreements; the impact of the strength of the U.S. dollar on international demand for products priced in U.S. dollars; general economic, market, public health and political conditions in the various countries in which our products are produced and/or sold; the impact of changing emissions and other related climate change regulations in the various jurisdictions in which our products are produced, used and/or sold; changes to our investment and capital allocation strategies or other facets of our strategic plan; and changes in market liquidity conditions, credit ratings and other factors that may impact our access to future funding and the cost of debt. These and other risks and uncertainties are discussed more fully in our Quarterly Report on Form 10-Q for the quarter ended April 30, 2025 and in Item 1A of our Annual Report on Form 10-K for the year ended July 31, 2024. We disclaim any obligation or undertaking to disseminate any updates or revisions to any forward-looking statements contained in this release or to reflect any change in our expectations after the date hereof or any change in events, conditions or circumstances on which any statement is based, except as required by law. Non-GAAP Reconciliations The following table reconciles net income to consolidated EBITDA and Adjusted EBITDA: EBITDA and Adjusted EBITDA are non-GAAP performance measures included to illustrate and improve comparability of the Company's results from period to period, particularly in periods with unusual or one-time items. EBITDA is defined as net income before net interest expense, income tax provision and depreciation and amortization. Adjusted EBITDA is EBITDA adjusted for certain unusual items and other one-time items. The Company considers these non-GAAP measures in evaluating and managing the Company's operations and believes that discussion of results adjusted for these items is meaningful to investors because it provides a useful analysis of ongoing underlying operating trends. The adjusted measures are not in accordance with, nor are they a substitute for, GAAP measures, and they may not be comparable to similarly titled measures used by other companies. THOR Investor Relations Contact: Seth Woolf Head of Corporate Development & Investor Relations [email protected] (574) 294-7718
South China Morning Post
3 days ago
- Business
- South China Morning Post
China EVs: BYD-triggered price war raises fears of Evergrande-like liquidity crisis
China's electric vehicle (EV) makers have had a lot to contend with over the past week: slumping shares for market leader BYD, cooling sales and margins and a warning from authorities in Beijing amid a punishing price war. Advertisement BYD's Hong Kong-listed shares lost as much as 17 per cent of their market value, or HK$122.3 billion (US$15.6 billion), on Monday after falling to HK$378.20 from an all-time high of HK$477.80 on May 23. The company's shares recovered 4 per cent on Tuesday. Analysts attributed part of the decline to a weak earnings report for the most recent quarter. The Shenzhen-based firm, the world's largest maker of new energy vehicles (NEVs), delivered 382,476 units in May, a 0.6 per cent gain from April. On the mainland, which is plagued by unrelenting discounts, its May sales stalled from a year earlier and weakened 2.5 per cent from April, according to a report released on Sunday. Around a week earlier, BYD said it would reduce prices of 22 models to promote sales , which cast doubt over the earnings outlooks of China's EV makers. 'The price move reinforces BYD's strategy to favour scale over temporary per-car profitability in the domestic EV market,' HSBC analysts including Ding Yuqian said in a report last week. 'This round of seasonal promotion coincides with soft domestic demand, weak consumption sentiment and intense competition.' Advertisement Left unchecked, China's EV price war and profitability problem could nudge the industry into a China Evergrande-style liquidity crunch , said Wei Jianjun, the chairman of Great Wall Motor, last week. He was referring to the beleaguered property developer. Li Yunfei, who oversees branding and public relations at BYD, took issue with the comparison.
CNA
20-05-2025
- Business
- CNA
Newly focused Vodafone sees cash-flow growth but Germany drags
LONDON : Vodafone's strategy of focusing on its strongest markets will start to deliver sustainable cash-flow growth this year, even if it takes longer for a turnaround in Germany to show up in the telecom's profits, its chief executive said on Tuesday. Margherita Della Valle has reshaped the British group in the last two years by selling operations in Spain and Italy and agreeing a merger in Britain, where it will become the mobile market leader when the deal completes in the coming weeks. "We are now operating in markets where we have strong positions and the potential to earn good returns," she told reporters. Vodafone has struggled in Germany, its biggest market, since it was tripped up by a change in the rules on selling cable TV to apartments. A 5 per cent decline in German service revenue partly offset positive performances in Britain, the rest of Europe, Turkey and Africa, resulting in 2.8 per cent growth for the group. Adjusted core earnings in Germany fell by nearly 13 per cent - dragging the result for the group down to 10.9 billion euros ($12.3 billion) from 11.0 billion the year before. After adjusting for hyperinflation in Turkey, core earnings met its 11 billion euro target, the company said. Della Valle said she expected Germany to return to revenue growth during this year, but there was one more quarter impacted by the TV law change and the market remained competitive. "We are not yet stable across all of Europe in FY 26 as Germany will need time to return to EBITDA growth," she said, referring to earnings before interest, tax, depreciation and amortisation, or core earnings. Analysts have applauded Della Valle's actions, which have reduced debt and have sharpened Vodafone's operational performance. But the market has remained sceptical about the group's prospects and the shares have declined 6 per cent in the last 12 months to lows last seen in 1997. They traded flat on Tuesday. It said it expected to report core earnings between 11.0 and 11.3 billion euros this year and adjusted free cash flow of 2.6-2.8 billion euros, up from 2.5 billion euros in 2024. ($1 = 0.8884 euros)
